KARACHI: Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain said on Wednesday that Pakistan was once a model for dozens of countries, but now, local investors are nervous about making investment decisions because it is considered risky.
He said that if a foreigner invests here, he tries to transfer his capital and profits out as soon as possible. He noted that the undocumented economy, smuggling, Afghan Transit Trade, unfair tax system, under-invoicing, misdeclaration, forgery, misuse of concessions given in FATA and PATA, and excessive paperwork affect the economy and damage its image.
Mian Zahid Hussain said the country has no industrial policy or economic direction. The noise of special industrial zones is high, but there is no implementation. The electricity, gas, and oil prices are much higher than those in regional countries, and the interest rate is very high. Who will dare to start a new business in a country where running a business is challenging, and people are fleeing by the millions?
Mian Zahid Hussain further said that it is impossible to hide the escape of local investors from Pakistan. The increase in tax net is limited to statements. The burden on taxpayers is increasing, and some companies must pay up to 68% in taxes. Under these conditions, he said getting the desired results from the investment effort is difficult.
He said the arrival of investment delegations from Saudi Arabia is a great success of the current government and SIFC. He added that if the country's investment environment improves, foreign investors will not have to be invited; they will invest in Pakistan themselves, improving the country's economic condition and solving many problems quickly.
Mian Zahid Hussain said that Prime Minister Shahbaz Sharif has visited different countries to attract foreign investors. SIFC is also making all possible efforts in this regard, which is commendable. He said that important policies should not be changed unpredictably and that crises in the country should be ended to restore the country's reputation.
He said the lack of coordination in various ministries and key departments should be increased. All such factors should be tackled to stop local and foreign investors from fleeing Pakistan, which sends a negative message.
Copyright Business Recorder, 2024
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